In currency processing systems, if the system determines that banknote or other currency objects cannot be read properly, is damaged, is counterfeit, or is otherwise unfit for continued circulation, the system will generally reject the banknote or currency object for a human to perform a second review of the note. In order to maintain deposit integrity and ensure that the original deposit account is credited for that note, the system must keep track of which account that note is associated with. This is currently done one of two ways. Some systems stop the machine after processing each deposit, and have a human review each note in that deposit and reconcile the account that deposit came from. This causes a labor intensity problem and causes a loss in productivity. Other systems continue running the machine and use physical separators inserted between each deposited set of notes in the rejected-note container in order to keep track of what account those rejected notes were associated with. These physical separators can take the form of header cards, trailer cards, input package barcodes. The currency processing machine will recognize the physical separators as identifying the beginning of a new deposit during processing, and will identify with which account the sequentially following sheets are associated.
The Cash Cycle describes what happens to currency from printing to destruction. Currency, a subset of currency objects, is created and distributed by Central Banks (and similar authorities), enters circulation, is used and reused many times, and eventually reaches a point where it is worn or soiled and must be replaced with a new note. This also is true for other currency objects such as Food Coupons, Casino Vouchers, Cash-Out Tickets and other types of currency objects used in commerce.
For example, currency (also known as banknotes) are dispensed, carried, spent, stored, exchanged and transported. They are transported in bulk from places of excess buildup, such as retailers, to more secure locations, such as Cash in Transport (CIT) facilities, bank vaults, etc. Whenever notes are aggregated, they must be sorted and counted. In virtually all places where any reasonable volume must be counted, this is done with machines of varying levels of speed and sophistication.
In the past several decades, the use of machines to count, sort and validate currency has expanded significantly in terms of both quantity and breadth of functionality. Some machines are used to count, sort, authenticate, capture serial numbers, evaluate fitness and even destroy banknotes (where this is authorized) at speeds up to or exceeding 44 banknotes per second.
One area of currency object processing that has not kept pace with other advancements in the field has been the handling and reconciliation of “rejects;” that is, currency objects that cannot be properly counted and sorted with automated equipment. Accordingly, there is great need for improvement in the handling and reconciliation of rejects and, to some extent, a reduction in human interaction with the banknotes, thus reducing the opportunity for mistakes or theft.
Further, the currency processing system will reject notes for many reasons, including the note being unreadable by the system because the note is, for example, torn, folded, heavily damaged, or glued together. The system also rejects notes because the system determines that the note may be counterfeit, or because the note should be shredded. Physical separators generally do not specify the reason that each note is rejected, but rather separates rejected notes from different accounts. Thus, a secondary human inspection is required to determine the cause of the note being rejected and what should be done with the note as a result. This again results in a labor intensity problem and corresponding loss of productivity.